Fountain Valley-based Hyundai Motor America reported a reversal in its seven month auto sales decline this month, helped by the U.S. government’s “cash for clunkers” vehicle trade-in program.

The automaker, part of South Korea’s Hyundai Motor Co., said it now projects to report positive sales for 2009, according to a Bloomberg report.

Hyundai and Irvine-based sister company Kia Motors America Inc. both posted positive sales numbers in July, benefiting from the government program.

Hyundai saw a 12% gain in vehicle sales last month from a year earlier with 45,553 vehicles sold last month.

The automaker reported that nearly 40% of sales were in response to the $4,500 credit for consumers to buy new vehicles when turning in older, less fuel-efficient models to help revive auto sales.

“We’re outpacing July for sure,” John Krafcik, president of the automaker’s U.S. operations told Bloomberg. “If you take all the cash-for-clunker business away, the market still feels strong.”

The automaker said that year-to-date sales were down 8%, but are still outperforming the 32% drop in U.S. auto sales for the period.

Hyundai is in line to pass Michigan's Chrysler Group LLC and Japan’s Nissan Motor Corp. in sales for the first time in its history, if sales continue at current levels, according to some reports.

The company also plans to add another luxury vehicle to accompany its highly successful Genesis sedan and coupe.

Hyundai said it would be selling its premier luxury sedan the Equus in 2010 this week at the Pebble Beach Concours d’Elegance event focused on classic luxury vehicles.

Hyundai said the new model, whose name may change closer to the launch in late 2010, would be designed to compete with rivals Mercedes-Benz, BMW and Japan’s Toyota Motor Corp.’s Lexus brands.